Banca Monte dei Paschi di Siena SpA agreed to sell Belgian unit Banca Monte Paschi Belgio SA to a company participated by funds managed by U.S.-based private equity firm Warburg Pincus LLC for €42 million, subject to an adjustment mechanism.
The transaction is subject to approval from the National Bank of Belgium and the European Central Bank. It will not have a meaningful impact on Monte dei Paschi's common equity Tier 1 ratio and was already accounted for in its restructuring plan, the Italian lender said.
Rothschild & Co. served as financial adviser to Monte dei Paschi in relation to the dael, while Orrick Herrington & Sutcliffe served as legal adviser.
Banca Monte Paschi Belgio has total assets worth €1.5 billion, loans to customers worth €800 million, direct funding of €1 billion and a book value of €110 million as of 2017-end.
The sale of Banca Monte Paschi Belgio is part of a deal reached with the European Commission in 2017 that enabled the Italian lender to receive €5.4 billion in precautionary recapitalization.